Governor Parson offers up detailed list of funding on the chopping block if FRA stalemate is not resolved

Missouri Governor Mike Parson

During a press conference at the State Capitol, Governor Mike Parson warned of the detrimental consequences to Missourians if the Federal Reimbursement Allowances (FRA) and related programs were not extended. The FRA and related programs provide critical funding to MO HealthNet and must be extended before cost-savings measures are needed on July 1. 

“If political maneuvering overextending this program persists, the FY22 budget passed in early May will be in direct conflict with our state’s financial reality come July 1,” said Governor Parson. “My administration will be forced to close a nearly $1.4 billion funding gap over the next two years, which means budget restrictions will have to be made across state government.”

The Fiscal Year 2022 operating budget includes estimated revenue from the FRA program and other allowances, taxes, and assessments to fund primary components of the MO HealthNet program. Failure to extend these programs would cost the state of Missouri an estimated $591 million in FY22 and $788 million in FY23. Payments from the MO HealthNet program would also be reduced by $1.52 billion in FY22 and $2 billion in FY23 if these programs are not extended.

“Some members of the General Assembly have expressed concern about certain health care coverages that are allowed through MO HealthNet that they believe are not Pro-Life. While I disagree with their assertions, a potential call would allow the opportunity for legislators to address these concerns,” said Governor Parson. “Let me be clear: I am Pro-Life. I have supported Pro-Life measures my whole career, and I always will. However, we cannot allow narrow political interests to hold hostage vital health care funding and the success of our economy.” 

“After July 1 it will be too late, so this is the final opportunity to extend the FRA during a special session. We will continue to work with House and Senate leadership to come to a resolution before noon tomorrow when a decision must be made,” said Governor Parson. 

July 1 is the deadline before budget restrictions and vetoes must be made in order to ensure a balanced budget. Restrictions would have detrimental impacts on state agencies and all Missourians. Budget restrictions and vetoes would include withholds to higher education, K-12 education, social services, health care services, and transportation, among others.

For a more complete list of potential restrictions and affected institutions, click here